YEAR-END REPORT JANUARY DECEMBER 2012

Transcription

1 Press release YEAR-END REPORT JANUARY DECEMBER 2012 VIKING LINE S EARNINGS WEAK BUT POSITIVE FULL CALENDER YEAR During the full report period January 1 December 31, 2012, consolidated sales of the Viking Line Group increased by 2.3 per cent to EUR M (504.3). Passenger-related revenue increased by 2.3 per cent to EUR M (467.8). Cargo revenue rose by 5.2 per cent to EUR 34.3 M (32.6). The Group s income after taxes for the full report period amounted to EUR 0.9 M (7.6). FOURTH QUARTER Consolidated sales of the Viking Line Group during the fourth quarter, October 1 December 31, 2012, increased by 4.0 per cent to million euros compared to the corresponding quarter of 2011 (EUR M). During the fourth quarter, passenger-related revenue increased by 4.3 per cent to EUR M (112.4), while cargo revenue was at the year-earlier level of EUR 8.5 M (8.5). Income after taxes during the fourth quarter of 2012 amounted to EUR -0.8 M (1.3). PASSENGER VOLUME AND MARKET SHARE The number of passengers on Viking Line s vessels amounted to 6,349,903 (6,351,714). The Group had a total market share in its service area of approximately 33.9 per cent (34.0 per cent). Viking Line s cargo volume amounted to 116,906 cargo units (114,795). Viking Line achieved a cargo market share of approximately 20.0 per cent (19.8 per cent). HEAVY MARKET INTEREST IN THE VIKING GRACE The Group s new flagship, the Viking Grace, was delivered to Viking Line Abp on January 10, 2013 from the STX Finland shipyard in Turku. In January 2013 the Viking Grace, which is fuelled by natural gas, replaced the Isabella on the Turku (Finland) Mariehamn/Långnäs (Åland Island, Finland) Stockholm (Sweden) route. The Isabella will service the Helsinki (Finland) Tallinn (Estonia) route during the summer of The Viking Grace is a concrete expression of Viking Line s belief in future passenger traffic featuring good on-board service, new on-board concepts as well as a unique environmentally friendly hull shape and drive concept. Any questions concerning this report will be answered by Mikael Backman, President and Chief Executive Officer. Tel: Viking Line is a public limited company and the market leading brand in passenger traffic on the northern Baltic Sea, with a mission to provide large-scale, affordable, safe passenger and cargo carrier services including first-class recreation, good food and attractive shopping. Its shares have been listed on the NASDAQ OMX Nordic Exchange Helsinki since Viking Line serves Finland, Sweden and the Baltic countries with seven vessels. During the financial year 2012 sales were about EUR 516 M. The number of passengers totalled 6.3 million. The average number of employees was 3,014. VIKING LINE ABP Norragatan 4/PB 166, AX Mariehamn, Åland, Finland. Tel Fax

2 SALES AND EARNINGS FULL CALENDER YEAR During the full report period January 1 December 31, 2012, consolidated sales of the Viking Line Group increased to EUR M (504.3). Operating income amounted to EUR 2.4 M (9.8). Net financial items totalled EUR -0.8 M (-1.9). Consolidated income before taxes totalled EUR 1.6 M (7.9). Income after taxes amounted to EUR 0.9 M (7.6). During the full report period, passenger-related revenue increased by 2.3 per cent to EUR M (467.8). Cargo revenue rose by 5.2 per cent to EUR 34.3 M (32.6). The number of passengers on Viking Line s vessels amounted to 6,349,903 during 2012, compared to 6,351,714 during Net sales revenue increased by 0.9 per cent to EUR M (363.1). The Group s operating expenses increased by a total of 2.4 per cent to EUR M (355.8). Of this amount, fuel expenses rose by EUR 4.3 M to EUR 66.4 M (62.1), due to higher fuel prices. The strong Swedish krona, which is fundamentally favourable to Viking Line, has nevertheless contributed to a heightened cost situation in the Group. FOURTH QUARTER Consolidated sales of the Viking Line Group during the fourth quarter, October 1 December 31, 2012, increased by 4.0 per cent to million euros compared to the corresponding quarter of 2011 (EUR M). Operating income during the quarter amounted to EUR -0.7 M (-0.3). Income after taxes during the fourth quarter of 2012 amounted to EUR -0.8 M (1.3). During the fourth quarter, passenger-related revenue increased by 4.3 per cent to EUR M (112.4), while cargo revenue was at the year-earlier level of EUR 8.5 M (8.5). Total operating expenses rose by 4.2 per cent to EUR M (122.3). SERVICES AND MARKET TRENDS During 2012, the Viking Line Group provided passenger and cargo carrier services using seven vessels on the northern Baltic Sea. In January 2013 the Group s new flagship, the Viking Grace, replaced the Isabella on the Turku (Finland) Mariehamn/Långnäs (Åland Island, Finland) Stockholm (Sweden) route. The Isabella will serve the Helsinki (Finland) Tallinn (Estonia) route during the summer of The number of passengers on Viking Line vessels totalled 6,349,903 during the financial year (6,351,714). Viking Line s cargo volume was 116,906 cargo units (114,795). Viking Line s cargo market share amounted to 20.0 per cent (19.8 per cent). During the report period, Viking Line strengthened its market share on the short route over the Sea of Åland by 1.9 percentage points to 45.0 per cent due to a larger number of days in service. The market share increased also on the Turku Mariehamn/Långnäs Stockholm route by 0.7 percentage points to 50.0 per cent. On the Helsinki Tallinn route, market share increased by approximately 0.1 percentage points to 24.3 per cent. Market share decreased on the Helsinki Mariehamn Stockholm route by 0.3 percentage points to 45.7 per cent. In cruise services between Stockholm and Mariehamn, Viking Line s market share decreased by 1.1 percentage points to 50.5 per cent. The Group thus had a total market share in its service area of approximately 33.9 per cent (34.0 per cent).

3 INVESTMENTS AND FINANCING The Group s investments totalled EUR 49.7 M (36.9), of which EUR 34.7 M was related to advance payments for Viking Grace. On December 31, 2012 the Group s non-current interest-bearing liabilities amounted to EUR 73.1 M (81.5). The equity/assets ratio was 46.2 per cent, compared to 46.5 per cent a year earlier. At the end of December 2012, the Group s cash and cash equivalents amounted to EUR 45.3 M (55.7). Net cash flow from operating activities amounted to EUR 32.8 M (30.6). RISK FACTORS Fluctuations in bunker (vessel fuel oil) prices have a direct impact on the Group s earnings. The Group is also exposed to various financial risks, among them fluctuations in currency exchange rates. Revenue is generated in euros and Swedish kronor. Most operational influx of cash and cash equivalents consists of euros. Prices of goods for sale and bunker oil are affected by foreign currencies, especially the US dollar. The Group endeavours to maintain good liquidity in order to be prepared to deal with adverse changes in operational cash flow. EVENTS AFTER THE END OF THE FINANCIAL YEAR After the balance sheet date, in conjunction with the delivery of the Group s new flagship, the Viking Grace, Viking Line Abp took out a loan of EUR M. This means that the Group s interest-bearing liabilities and liquidity risk have increased. The loan has a maturity of 12 years, with straight-line repayments of the loan principal and a fixed interest rate. The loan agreement includes loan covenants according to market terms. The environmental grant of EUR 28 M that was approved by the Finnish Ministry of Transport and Communications was paid to Viking Line Abp on January 18, ORGANIZATION AND PERSONNEL The average number of Group employees was 3,014 (3,060), of whom 1,841 (1,873) worked for the parent company. Land-based personnel totalled 715 (755) and shipboard personnel totalled 2,299 (2,305). OUTLOOK FOR 2013 In January 2013 the Group s new flagship, the Viking Grace, replaced the Isabella on the Turku Mariehamn/Långnäs Stockholm route. The Isabella will serve the Helsinki Tallinn route during the summer of During 2012 the Group s other vessels will provide service on their regular routes. The Board of Directors believes that operating income will improve in 2013 compared to operating income in 2012.

4 THE BOARD S PROPOSAL ON DISTRIBUTION OF EARNINGS According to the balance sheet of Viking Line Abp on December 31, 2012 unrestricted equity totalled EUR 68,395, The Board of Directors proposes to the annual shareholders meeting that: No dividend will be paid for the financial year 2012 and remaining unrestricted equity is EUR 68,395, SHAREHOLDERS MEETING The annual shareholders meeting of Viking Line Abp will be held at 12 noon on Friday, April 19, 2013 at the Alandica Kultur och Kongress auditorium, Strandgatan 33, Mariehamn, Åland, Finland. An electronic version of the Annual Report for the financial year 2012 will be published during the week of March 4, 2013 on the Company s website, The printed Annual Report will be published during the week of March 18, FINANCIAL INFORMATION FOR 2013 During the financial year 2013, Viking Line Abp s interim reports will be published for the periods January 1 to March 31, 2012; January 1 to June 30, 2012 and January 1 to September 30, These interim reports will be published on May 15, August 15 and November 14, 2013, respectively. The press release on the results for the fiscal year 2013 will be published on February 13, The Annual Report for the financial year 2013 will be published during the week of March 17, Mariehamn, Åland, February 13, 2013 VIKING LINE ABP The Board of Directors

5 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Oct 1, 2012 Oct 1, 2011 Jan 1, 2012 Jan 1, 2011 EUR M Dec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011 SALES Other operating revenue Expenses Goods and services Salary and other employment benefit expenses Depreciation and impairment losses Other operating expenses OPERATING INCOME Financial income Financial expenses INCOME BEFORE TAXES Income taxes INCOME FOR THE PERIOD Translation differences TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Income attributable to: Parent company shareholders Total comprehensive income attributable to: Parent company shareholders Earnings per share before and after dilution, EUR When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR +/ 0.1 M have occurred.

6 CONSOLIDATED BALANCE SHEET EUR M Dec 31, 2012 Dec 31, 2011 ASSETS Non-current assets Intangible assets Land Buildings and structures Renovation costs for rented properties Vessels Machinery and equipment Advance payments Investments available for sale Receivables Total non-current assets Current assets Inventories Income tax assets Trade and other receivables Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity Share capital Reserves Translation differences Retained earnings Equity attributable to parent company shareholders Total equity Non-current liabilities Deferred tax liabilities Non-current interest-bearing liabilities Total non-current liabilities Current liabilities Current interest-bearing liabilities Income tax liabilities Trade and other payables Total current liabilities Total liabilities TOTAL EQUITY AND LIABILITIES

7 CONSOLIDATED CASH FLOW STATEMENT Jan 1, 2012 Jan 1, 2011 EUR M Dec 31, 2012 Dec 31, 2011 OPERATING ACTIVITIES Income for the period Adjustments Depreciation and impairment losses Other items not included in cash flow Interest expenses and other financial expenses Interest income and other financial income Dividend income Income taxes Change in working capital Change in trade and other receivables Change in inventories Change in trade and other payables Interest paid Financial expenses paid Interest received Financial income received Taxes paid NET CASH FLOW FROM OPERATING ACTIVITIES INVESTING ACTIVITIES Investments in vessels Investments in other property, plant and equipment Advance payments Refund claim on advance payments Divestments of other property, plant and equipment Change in non-current receivables Dividends received NET CASH FLOW FROM INVESTING ACTIVITIES FINANCING ACTIVITIES Increase in non-current liabilities Amortization of non-current liabilities Dividends paid NET CASH FLOW FROM FINANCING ACTIVITIES CHANGE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at beginning of period Change in held-to-maturity investments CASH AND CASH EQUIVALENTS AT END OF PERIOD

8 STATEMENT OF CHANGES IN CONSOLIDATED EQUITY Equity attributable to parent company shareholders Share Translation Retained Total EUR M capital Reserves differences earnings Equity Equity, Jan 1, Dividend to shareholders Total comprehensive income for the period Equity, Dec 31, Dividend to shareholders Total comprehensive income for the period Equity, Dec 31,

9 QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME EUR M Q4 Q3 Q2 Q1 SALES Other operating revenue Expenses Goods and services Salary and other employment benefit expenses Depreciation and impairment losses Other operating expenses OPERATING INCOME Financial income Financial expenses INCOME BEFORE TAXES Income taxes INCOME FOR THE PERIOD Translation differences TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Income attributable to: Parent company shareholders Total comprehensive income attributable to: Parent company shareholders Earnings per share before and after dilution, EUR

10 SEGMENT INFORMATION, VIKING LINE GROUP Jan 1, 2012 Jan 1, 2011 OPERATING SEGMENTS, EUR M Dec 31, 2012 Dec 31, 2011 Sales Vessels Unallocated Total, operating segments Eliminations Total sales of the Group Operating income Vessels Unallocated Total operating income of the Group

11 PLEDGED ASSETS AND CONTINGENT LIABILITIES EUR M Dec 31, 2012 Dec 31, 2011 Contingent liabilities Assets pledged for own debt Investment commitments not included in the accounts contractual amount FINANCIAL RATIOS AND STATISTICS Jan 1, 2012 Jan 1, 2011 Dec 31, 2012 Dec 31, 2011 Equity per share, EUR Dividend per share, EUR Number of shares on balance sheet date 10,800,000 10,800,000 Return on equity (ROE) 0.6 % 4.6 % Return on investment (ROI) 1.3 % 3.9 % Equity/assets ratio 46.2 % 46.5 % Investments, EUR M as % of sales 9.6 % 7.3 % Passengers 6,349,903 6,351,714 Cargo units 116, ,795 Average number of employees, full time equivalent 3,014 3,060 Earnings per share = (Income before taxes income taxes +/ minority interest) / Average number of shares Equity per share = Equity attributable to parent company shareholders / Number of shares on balance sheet date Return on equity (ROE), % = (Income before taxes - income taxes) / Equity including minority interest (average for the year) Return on investment (ROI), % = (Income before taxes + interest and other financial expenses) / (Total assets - interest-free liabilities [average for the year]) Equity/assets ratio, % = (Equity including minority interest) / (Total assets advances received) When rounding off items to the nearest EUR 1,000,000, rounding-off differences of EUR +/ 0.1 M have occurred. The above figures from the financial statements have been audited.